Ethereum is under selling pressure despite stabilizing efforts through purchases on the Bybit exchange. Market sentiment remains negative, as reflected in technical indicators and investor expectations.
Bybit’s ETH Purchases Fail to Support Prices
Following a recent $1.7 billion hack, the Bybit exchange aims to stabilize its operations by purchasing Ethereum. Recently, Bybit acquired 36,893 ETH worth $87.5 million, bringing the total to 212,101 ETH valued at $574 million over the last four days. However, these purchases have not been sufficient to restore market confidence. Ethereum’s trading volume saw a significant 38.6% decline within the last 24 hours, complicating price recovery. Observers note that Bybit’s high-volume ETH acquisitions have not contributed to price stabilization, indicating that the market is generally under selling pressure.
Technical Analysis Suggests a Drop to $2,200
Ethereum’s price is showing signs of decline as it loses critical support levels. Currently, ETH is trading below the 200-day exponential moving average, reflecting a downtrend in the market. According to technical analysis, there is a high likelihood that the price could drop to the $2,200 level. If this support level fails to hold, the decline could extend to $2,000. Without buyer engagement, selling pressure is expected to intensify.
Market Sentiment and Derivative Positions in Ethereum
Movements in derivative markets are also exerting pressure on Ethereum’s price. Data from Coinglass shows that investors anticipate a decrease in ETH’s value, with $247 million in long positions and $296 million in short positions at the $2,355 and $2,458 levels. This scenario suggests that the market is predominantly bearish. If Ethereum’s price declines further, liquidation of long positions might occur, potentially accelerating the downward trend.
Negative market sentiment and selling pressure continue to impact Ethereum's price. Despite Bybit's efforts and other market movements, the outlook remains uncertain.
